Which moral argument are you subscribed to here again?
Did you read the article? The ICIJ notices that these are registered as charities in the states which means they are tax exempt except when the come across things that trigger UBIT. UBIT is an automatic 40% tax. University endowments are able to invest everywhere tax free, except when some debt financed transactions trigger UBIT for all tax exempt shareholders.
UBIT wasn't created to ensnare university endowments in scenarios where founders and board members of independent companies happened to get an exit through debt financing.
This is a circumstance where you adapt. Avoid that misapplication of tax by registering a business in another country and investing in the same thing through it.
Did you read the article? The ICIJ notices that these are registered as charities in the states which means they are tax exempt except when the come across things that trigger UBIT. UBIT is an automatic 40% tax. University endowments are able to invest everywhere tax free, except when some debt financed transactions trigger UBIT for all tax exempt shareholders.
UBIT wasn't created to ensnare university endowments in scenarios where founders and board members of independent companies happened to get an exit through debt financing.
This is a circumstance where you adapt. Avoid that misapplication of tax by registering a business in another country and investing in the same thing through it.